As much as outsourcing non-core activities, like payroll services, offers numerous benefits, such a process comes with many risks. However, if a business takes due time in outsourcing company payroll and follows a set of feasible steps, liabilities can be minimised to support corporate success and performance growth in the long run.
First, it is essential to keep in mind that outsourcing payroll is not a challenging process. Nevertheless, if a business makes an informed decision and plays by a cautious multi-step plan, it can make sure that handing over such operations to an external partner will boost business performance and spare funds along with staff resources.
As the French writer, Antoine de Saint-Exupéry said, “a goal without a plan is just a wish.” Without exaggeration, planning is the most important—and the very first—step of any project, especially if a company is outsourcing essential non-core activities.
Clearly-defined roles and measurable goals are the very building blocks of a successful outsourcing strategy. Timeframes need to be set appropriately, and staff dealing with the operations being outsourced need to prepare for the structural and operational changes.
Which leads to another matter of crucial importance: internal communications, which is often overlooked. To make sure that the staff loyalty towards the business does not get tainted, internally communicating the steps with high transparency is of gravity.
2. Setting expectations
To find the best payroll provider suiting the needs of your business requires you to have a clear set of expectations. When setting these, give special attention to the values of your company. Having a clear vision of your expectations will help you find a payroll service provider that aligns with your values.
This is also an excellent time to return to the first step and double-check the goals you have set. Unless the goals you set to achieve are realistic, the outsourcing is likely to get derailed in its initial phases.
Also, carrying out an ROI analysis with a conservative approach and factoring in the timing of the outsourcing benefits can support you in staying real and calm. The provisional costs for outsourcing also need to be taken into account, so you know the exact boundaries of your playing field.
As compared to outsourcing other non-core operations, payroll administration is fast, and the benefits are immediately seen. As soon as the payroll company takes over the activities, the very first paycheck handled by such a company will give a more exclusive feel to employees receiving their salaries.
3. Probing the market
Once your goals are realistic and crystal clear, are synchronised with your expectations, and you know that your staff is aware of the outsourcing process, you can start your market research.
When probing the market, compare all the players and cross-reference the services they offer to the tiniest detail. Instead of classifying service providers by their prices, focus on the price-value ratio as cheapest is not always the best.
Reach out to the service providers and ask for customised consultations. While judging a book by its cover is never recommended and can lead to making wrong decisions, it is recommended to pay attention to gut feelings. The corporate culture of the business taking over your payroll operations has to be in line with the vision of your company, or else it may be challenging to work well together in the long run.
PayrollMalta takes the time to understand your company before suggesting a solution that best suits your needs. During this meeting, we inclusively explain the process involved regarding the input needed from your company and ours. We find this step crucial in supporting you to fine-tune your outsourcing plans and make sure all is covered.
Nowadays, the slogan of “transparency is the new sexy” is at risk of becoming a weary commonplace. Nevertheless, if you see the tiniest cloud of opacity overshadowing any part of the operations of the company you are in negotiation with, it is highly recommended to halt discussions immediately. Payroll administration is a field that requires utmost transparency, and you should not settle for anything less than that.
PayrollMalta offers you a single comprehensive source for all employee salaries, working hours, leave entitlement and tax-related information. Our up-to-date list of employees — accompanied by the function of adding new employees and removing those no longer in employment—stays confidential and is accessible to you at any given time.
4. Agreeing on process
Once settled with a payroll company, it is time to go legal and set every single detail in stone. Remember: you are not only outsourcing the very building block that has to operate flawlessly, so your staff remains happy, but you are also handing over accountability. All the lines of responsibility need to be drawn, and the payroll service provider takes ownership of all the duties involved.
When we take over your payroll administration, PayrollMalta handles all liaison with relevant government entities and management of all form submissions as necessary. PayrollMalta also guarantees that all taxes and payments due are correctly calculated, as well as are filed and paid on time to avoid paycheck errors and late payment penalties.
Set a precise timing for the steps of your outsourcing. Pay special attention not only on solidifying the relationship with your new service provider but also in helping your staff who are handing over the payroll operations.
Once your personnel is reallocated and retrained in your organisation, it leaves a realistic leeway for them to catch up with their new responsibilities. If they need training; train them. Investing in your staff is never money wasted. If you need to end any of the contracts due to cost-cutting measures, you must ensure that you support your leaving team through this challenging transitionary period, and make an effort in assisting them with finding a new job.
Stay calm through the process and leave enough time for outsourcing to fall in place. Although the outsourcing process might be challenging, once the payroll company takes over your administration, as such a service provider is specialised for this very operation, your employees immediately receive an upgraded service with elevated customer experience.
At PayrollMalta, our passionate team of leading payroll advisors manages the whole payroll process with minimal effort from your side. Our focus points include salary calculations, tax and national insurance deductions, payslip generation, and paying your employees while also taking over the submissions and payments to the Commissioner of Revenue on your behalf.
We store all your information with the highest confidentiality standards and use it solely for payroll-related matters. Like data security, safety and reliability are among our top priorities; we use industry-leading and state-of-the-art software and hardware solutions to store and protect your data.
5. Outsourcing payroll
When all is set, dive in and realise your plans. Embrace the stoic way of thinking and remember that nothing ever goes as planned. Keep your wits through the process and give time to all the players to adjust to the new scenario. It is better to invest more funds and time than arriving at an outcome that is only half done. Remember; there are no problems, just challenges. Once the handover has taken place, lay back and increase focus on other—preferably core—activities.
As part of our standard service, we provide you with several reports, allowing further analysis of salary data. Our focus is exclusive and undisturbed on payroll, and any query that you or your employees might direct our way. We continuously monitor our payroll management system to ensure that data remains confidential at all times.